US Companies’ Growth Embraces New Technology and Digitization

Michael Mundaca

Having served in both George W. Bush and Barack Obama’s administrations within the US Treasury Department, Michael Mundaca was awarded the prestigious Alexander Hamilton Award for his service in the department’s Office of Tax Policy. From there, Michael Mundaca went on to his current role as co-director of the National Tax Department and Americas Tax Center with the international firm Ernst & Young (EY).

EY recently surveyed a range of middle-market companies all over the world. The global middle market contributes to nearly half of the world’s GDP and represents around 99 percent of global business. US middle-market companies are predicting growth in coming years despite the unpredictability of globalizing and increasing digitization.

The 2017 survey found that around 10 percent of US middle-market companies are predicting growth above 26 percent, while the global average shows only 6 percent of companies predicting such growth. Only 1 percent of these US companies report negative growth, while the global average for negative growth is 7 percent.

Globalization and digitization present new challenges for businesses and can be disruptive to old business patterns. The EY survey showed, however, that US companies tend to use these factors as enablers. The World Economic Forum ranked the United States fourth of 138 nations in its ability to integrate new technologies into its business, and many companies predict growth through expanding to other countries rather than focusing on local acquisitions. With strategies that lean into globalization and digitization, US middle-market companies are poised to grow ahead of most other countries in the coming years.